HB 31

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  R. Neil Walter proposes the following substitute bill:
1Local Education Agency Financial Reporting
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: R. Neil Walter
  Senate Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill amends provisions related to the Utah Public Finance Website and financial
6   reporting for education.
7   Highlighted Provisions:
8This bill:
9▸ defines terms;
10▸ excludes certain financial information from reporting requirements;
11▸ requires the state auditor to create certain common naming conventions;
12▸ requires a local education agency to:
13●   use common naming conventions when reporting payroll data; and
14●   include an employee's benefits when reporting payroll data; and
15▸ makes technical and conforming changes.
16   Money Appropriated in this Bill:
17None
18   Other Special Clauses:
  1st Sub. H.B. 31
19This bill provides a special effective date.
20   Utah Code Sections Affected:
21   AMENDS:
2267-3-12, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
23
24   Be it enacted by the Legislature of the state of Utah:
25Section 1. Section 67-3-12 is amended to read:
2667-3-12 . Utah Public Finance Website -- Establishment and administration --
27   Records disclosure -- Exceptions.
28   (1) As used in this section:
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29(a) "Common naming convention" means a standardized set of job titles and position
30classifications the Office of the State Auditor creates to ensure consistent reporting of
31payroll and benefit compensation data for a local education agency.
32[(a)] (b)(i) Subject to Subsections [(1)(a)(ii)] (1)(b)(ii) and (iii), "independent entity"
33means the same as that term is defined in Section 63E-1-102.
34(ii) "Independent entity" includes an entity that is part of an independent entity
35described in Subsection [(1)(a)(i)] (1)(b)(i), if the entity is considered a component
36unit of the independent entity under the governmental accounting standards issued
37by the Governmental Accounting Standards Board.
38(iii) "Independent entity" does not include the Utah State Retirement Office created
39in Section 49-11-201.
40[(b)] (c) "Local education agency" means a school district or charter school.
41[(c)] (d) "Participating local entity" means:
42(i) a county;
43(ii) a municipality;
44(iii) the State Fair Park Authority, created in Section 11-68-201;
45(iv) a special district under Title 17B, Limited Purpose Local Government Entities -
46Special Districts;
47(v) a special service district under Title 17D, Chapter 1, Special Service District Act;
48(vi) a housing authority under Title 35A, Chapter 8, Part 4, Housing Authorities;
49(vii) a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
50District Act;
51(viii) except for a taxed interlocal entity as defined in Section 11-13-602:
52(A) an interlocal entity as defined in Section 11-13-103;
53(B) a joint or cooperative undertaking as defined in Section 11-13-103; or
54(C) any project, program, or undertaking entered into by interlocal agreement in
55accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
56(ix) except for a taxed interlocal entity as defined in Section 11-13-602, an entity that
57is part of an entity described in Subsections [(1)(c)(i)] (1)(d)(i) through (viii), if the
58entity is considered a component unit of the entity described in Subsections [
59(1)(c)(i)] (1)(d)(i) through (viii) under the governmental accounting standards
60issued by the Governmental Accounting Standards Board;
61(x) a conservation district under Title 17D, Chapter 3, Conservation District Act; or
62(xi) a governmental nonprofit corporation under Title 11, Chapter 13a, Governmental
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63Nonprofit Corporations Act.
64      [(d)] (e)(i) "Participating state entity" means the state of Utah, including its executive,
65legislative, and judicial branches, its departments, divisions, agencies, boards,
66commissions, councils, committees, and institutions.
67(ii) "Participating state entity" includes an entity that is part of an entity described in
68Subsection (1)(d)(i), if the entity is considered a component unit of the entity
69described in Subsection [(1)(d)(i)] (1)(b)(i) under the governmental accounting
70standards issued by the Governmental Accounting Standards Board.
71      [(e)] (f) "Public finance website" or "website" means the website established by the state
72auditor in accordance with this section.
73      [(f)] (g)(i) "Public financial information" means each record that is required under this
74section or by rule made by the Office of the State Auditor under [Subsection (9)]
75Subsection (10) to be made available on the public finance website, a participating
76local entity's website, or an independent entity's website.
77(ii) "Public financial information" does not include payments a third-party contractor
78or vendor makes to employees of the third-party contractor or vendor in
79connection with providing a contractual service to a local education agency.
80      [(g)] (h) "Qualifying entity" means:
81(i) an independent entity;
82(ii) a participating local entity;
83(iii) a participating state entity;
84(iv) a local education agency;
85(v) an institution of higher education as defined in Section 53H-1-101;
86(vi) the Utah Educational Savings Plan created in Section 53H-10-202;
87(vii) the Utah Housing Corporation created in Section 63H-8-201;
88(viii) the School and Institutional Trust Lands Administration created in Section
8953C-1-201;
90(ix) the Utah Capital Investment Corporation created in Section 63N-6-301; or
91(x) a URS-participating employer.
92      [(h)] (i)(i) "URS-participating employer" means an entity that:
93(A) is a participating employer, as that term is defined in Section 49-11-102; and
94(B) is not required to report public financial information under this section as a
95qualifying entity described in Subsections (1)(g)(i) through (ix).
96(ii) "URS-participating employer" does not include:
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97(A) the Utah State Retirement Office created in Section 49-11-201;
98(B) an insurer that is subject to the disclosure requirements of Section 31A-4-113;
99(C) a private nonprofit organization that is not a public employees' association; or
100(D) a withdrawing entity.
101[(i)] (j)(i) "Withdrawing entity" means:
102(A) an entity that elects to withdraw from participation in a system or plan under
103Title 49, Chapter 11, Part 6, Procedures and Records;
104(B) until the date determined under Subsection 49-11-626(2)(a), a public
105employees' association that provides the notice of intent described in
106Subsection 49-11-626(2)(b); and
107(C) beginning on the date determined under Subsection 49-11-626(2)(a), a public
108employees' association that makes an election described in Subsection
10949-11-626(3).
110(ii) "Withdrawing entity" includes a withdrawing entity, as that term is defined in
111Sections 49-11-623 and 49-11-624.
112   (2) The state auditor shall[ ] :
113(a) establish and maintain a public finance website in accordance with this section[.] ;
114(b) create and maintain a list of common naming conventions that apply to each local
115education agency; and
116(c) ensure that each local education agency reporting payroll and compensation data
117selects job titles from the common naming conventions when submitting or updating
118payroll and compensation data.
119   (3) The website shall:
120(a) permit Utah taxpayers to:
121(i) view, understand, and track the use of taxpayer dollars by making public financial
122information available on the Internet for participating state entities, independent
123entities, participating local entities, and URS-participating employers, using the
124website; and
125(ii) link to websites administered by participating local entities, independent entities,
126or URS-participating employers that do not use the website for the purpose of
127providing public financial information as required by this section and by rule
128made under [Subsection (9)] Subsection (10);
129(b) allow a person that has Internet access to use the website without paying a fee;
130(c) allow the public to search public financial information on the website;
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131(d) provide access to financial reports, financial audits, budgets, or other financial
132documents that are used to allocate, appropriate, spend, and account for government
133funds, as may be established by rule made in accordance with [Subsection (9)]
134Subsection (10);
135(e) have a unique and simplified website address;
136(f) [be guided by the ] use the principles described in Subsection 63A-16-202(2) as
137guidance;
138(g) include other links, features, or functionality that will assist the public in obtaining
139and reviewing public financial information, as may be established by rule made under [
140Subsection (9)] Subsection (10);
141(h) use common naming conventions for a local education agency's payroll and
142compensation data posted to the website; and
143[(h)] (i) include a link to school report cards published on the State Board of Education's
144website under Section 53E-5-211.
145   (4) The state auditor shall:
146(a) establish and maintain the website, including the provision of equipment, resources,
147and personnel as necessary;
148(b) maintain an archive of all information posted to the website;
149(c) coordinate and process the receipt and posting of public financial information from
150participating state entities; and
151(d) coordinate and regulate the posting of public financial information by participating
152local entities and independent entities.
153   (5) A qualifying entity shall permit the public to view the qualifying entity's public
154financial information by posting the public financial information to the public finance
155website in accordance with rules made under [Subsection (9)] Subsection (10).
156   (6) The content of the public financial information posted to the public finance website is
157the responsibility of the qualifying entity posting the public financial information.
158   (7) A URS-participating employer shall provide employee compensation information for
159each fiscal year ending on or after June 30, 2022:
160(a) to the state auditor for posting on the Utah Public Finance Website; or
161(b)(i) through the URS-participating employer's own website; and
162(ii) via a link to the website described in Subsection (7)(b)(i), submitted to the state
163auditor for posting on the Utah Public Finance Website.
164   (8)(a) A qualifying entity may not post financial information that is classified as private,
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165controlled, or protected under Title 63G, Chapter 2, Government Records Access and
166Management Act, to the public finance website.
167(b) An individual who negligently discloses financial information that is classified as
168private, protected, or controlled by Title 63G, Chapter 2, Government Records
169Access and Management Act, is not criminally or civilly liable for an improper
170disclosure of the financial information if the financial information is disclosed solely
171as a result of the preparation or publication of the website.
172   (9) A local education agency shall include an employee's benefits when reporting payroll
173and compensation data to the state auditor under this section.
174   [(9)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
175the Office of the State Auditor:
176(a) shall make rules to:
177(i) establish which records a qualifying entity is required to post to the public finance
178website;
179(ii) establish and enforce common naming conventions for a local education agency
180reporting payroll and compensation data; and
181[(ii)] (iii) establish procedures for obtaining, submitting, reporting, storing, and
182posting public financial information on the public finance website; and
183(b) may make rules:
184(i) governing when a qualifying entity is required to disclose an expenditure made by
185a person under contract with the qualifying entity, including the form and content
186of the disclosure; and
187(ii) allowing for the inclusion of financial data provided by a participating local entity
188to be included on the Utah Public Finance Website in a uniform manner.
189   [(10)] (11) The rules made under [Subsection (9)] Subsection (10) shall only require a
190URS-participating employer to provide employee compensation information for each
191fiscal year ending on or after June 30, 2022:
192(a) to the state auditor for posting on the public finance website; or
193(b)(i) through the URS-participating employer's own website; and
194(ii) via a link to the website described in [Subsection (10)(b)(i)] Subsection (11)(b)(i),
195submitted to the state auditor for posting on the public finance website.
196Section 2. Effective Date.
197   This bill takes effect on July 1, 2026.
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